China's largest listed car distributor has come to the rescue of Saab in a deal worth as much as 110 million euros, staving off the collapse of one of Sweden's best-known brands. Spyker Cars, the Dutch owner of Saab, announced a deal with China's Pangda Automobile Trade Co Ltd on Monday, which it said would secure Saab's medium-term funding needs and allow production to resume within days.
Saab will immediately receive 30 million euros from Pangda for vehicles destined for sale in China, allowing it to repay suppliers and restart production soon, CEO Victor Muller said. The firm's Trollhatten plant has been idle for about six weeks. Parts suppliers ceased deliveries until bills were paid.
"This is a good first step if it can lead to Saab talking to its suppliers about paying its bills," said Svenake Berglie, chief executive of the suppliers organisation, FKG. He said it would take about a week to get negotiations done with suppliers and another week to restart output. Suppliers estimate Saab owes them "hundreds of millions" of crowns to suppliers for car parts, electricity and plant maintenance.
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